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ISSN 1648-4142 TRANSPORT htt p:lwww. vtu.lt/engl ish/editions
TRANSPORT- 2002, Vol XVII, No 2, 71- 75
INTERACTION OF THE KLAIPEDA SEA PORT AND RAILVVAY TRANSPORT
Raimondas Burkovskis ', Ramfinas Pal§aitis2 Vilnius Gediminas Technical University, Plytines 27, LA-2040 Vilnius, Lithuania Received 2002 02 07; accepted 2002 03 04
Abstract. This article offers the panoramic view to interoperability of sea and railway transport in Lithuania. Serious attention is being given to the cargo tlows forecasts, analysis of geographic, political, legal, economical, technical and other factors influencing the intensity of transit cargo flows and using the existing infrastructure capacities. Improvement and further development of technological and technical base of railways for the development of container transportation is identified. Optimization of tariffs (railway+ port) will increase the competitiveness of corridor IX B for Iransit cargo and traffic flows. Keywords: competitiveness, interoperability, port, railway, flows, cargo.
1. Introduction It is envisaged that the activities of the Baltic States ports will increase considerably because of cargo flows. Since the first years of Lithuania's independence the That is why the ports of Lithuania, Estonia and Latvia are image of the country is being established as that of a constantly improving their performance orienting their transit country which by its international transport activities to cargo transit. The following activities were corridors connects Western and Eastern, as well as performed in the ports: deepening of water area, increasing Southern and Northern countries [ l, 2]. This was predeter• of warehouse space, construction of new container mined by the importance of transit transportation for the terminals, huge complexes for oil and oil repumping and economic life. Income from transit services creates the storing. Efforts are made in order to retain existing tariffs major part of the country's GDP and establishes thousands of cargo handling and transportation. Centres of logistics of working places. are established and foreign investments are attracted in The above circumstances also determine a new order to improve the quality of activities. approach to the transit system as to a unifonn multimodal Currently various Russian authorities support the process [3-7]. In this case services provided to customers policy of directing Russian cargoes to the ports of Russia. are to comprise a full complex of logistics, including The anticipated amount of cargo flows is forecast transportation of goods, storing, customs clearence differently: some scientists envisage the amount of cargoes procedures, formal arrangements of documents, services etc. in 20 I 0 up to 400 million tones per year, from which Russia A very important role in the transit chain is played by would handle only !50 million tons. However the Russian the sea and railway transport. The Interaction of the sea scientists themselves are more pessimistic. In 2010 their and railway transport can be characterised by common forecast increase of cargo flows is 20-30%. It is anticipated interests in order to attract transit cargoes and to use that in 2020 services of transport in ports will exceed the (maximally) the existing infrastructure capacities and, due demand by 2-3 times. to new investments and marketing, to assure the The above perspective determines the development functioning of common multimodal system in future by of various services in the p011s and transition from nanow attracting new cargoes. specialization to wider universality. This tendency is felt watching the efforts of the pol1S to attract new cargoes 2. Cargo Fliows (containers in the first place). Evaluating the already existing terminals it becomes obvious that the competition Via the Baltic ports the flows of cargoes from Russia, among ports will increase in future. Belarus, Ukraine, Kazakhstan and many other countries The Lithuanian Government understands the are performed. importance of transit for the economy of the country and pays more attention to multimodal transportation; it also 1 E-mail: [email protected] considers the process of cargo transportation as an 2 E-mail: [email protected] inseparable transport chain. Railway transport comprises 72 R. Burkovskis, R. PaLiiaitis I TRANSPORT- 2002, Voi XVII, No 2, 71-75 a part of this chain and is the main supplier of cargoes to ments, legal regulations, restrictions and other factors the Klaipeda port. The railway transport in Lithuania stipulating or restricting volumes of cargo transit as well delivering cargoes to the port has to cl1mpete not only as interaction between railway and port. with road transport, but also with railways. Especially sharp Interaction between railway and p011 first of all has competition with Estonian and Latvian railways is being to be expressed by the establishment of common transit observed this year. policy. It is necessary to understand that certain hindrances Railways may become one of the major hindrances in one part of the system will have a negative impact on for the rapid development of the port which determines the entire system. Thus, close co-operation among the the decrease of cargo flows due to its obsolete rolling• port companies and railway enterprises is necessary stock, awkward monopolic enterprise with ineffective involving also responsible representatives of the state management, shortage of funds, the state's interference institutions. into the activities of the enterprise as well as many other The Lithuanian Government establishes the state factors. transit policy with the help of the Transport Transit In order to avoid all the above it is necessary to pro• Committee. The implementing authority is the Ministry of ceed with railway restructuring improving the management Transport and Communications as well as the institutions of enterprises, seeking higher efficiency and flexibility of under its regulation sphere [8]. However, taking into activities, solving problems of inti"astructure financing. account economic opportunities it is difficult to expect subsidies for passenger transportation, separating the financial support from the state for the implementation of functions not characteristic to railways, decreasing the vital projects. interference of the state into economic activities and So far the Lithuanian Government has no specific assuring liberalisation of tariffs and transpmtation market. strategy for cargo transit via the territory of Lithuania. Evaluating the above the conclusion might be made The absence of this strategy caused disputes inside the that many factors depending on various conditions influence country and they were mostly related to privatisation of the transit of cargoes. The main of these are as follows: the most important sea shipping companies- .,Lithuanian Geographic and natural factors; Sea shipping" and ,K!aipeda Transport Fleet" as well as Political, legal and economic factors; to absence of a clear vision related to the perspective of Security, technological, qualitative and quantitative the above companies. Currently the fears seem to be quite factors; motivated, i.e. that, after the privatisation ofthe ,,Lithuanian Pricing and tariff policy factors. Sea shipping", Lithuania can loose its fleet as well as the Some of these factors prevail and are more evident in control of one of the transit chains, i.e. transportation by one country and some - in other countries. Thus, sea. This would not have happened if perspectives for increasing competitiveness it is necessary in the first place shipping activities as well as its place in the transit system to develop and present national advantages trying at the and limits of the state's interference into the activities of same time to reduce the differences among other less the company were set out in due time. A probability exists advantageous factors. that the same will happen after the privatisation of the Lithuanian Railways. 3. Geographic and Natural Factors Comparing Lithuania with Estonia and Latvia, a certain lacking behind in the practical management of Lithuania in terms of geographic situation is less transit policy is observed. Up to 1999 the image of Lithuania attractive to the Russian transport and cargoes than Latvia as a transit country was insufficiently popularised. The and Estonia. The major disadvantage is a longer distance co-operation among private and state enterprises and from the main Russian economic centres to Klaipeda, as state institutions was insufficient, especially in terms of well as crossing of the territory of Belarus. On the other legal acts. That is why new legal acts limit transit to new hand the Klaipeda port is an ice-free port in the very North restrictions instead of promoting this type of activity. which can accept vessels throughout the year. Firstly it concerns the law of Klaipeda free port. The The depth of the port water area and the entrance to law incurred many discussions among various Lithuanian the port partly determine the distribution of cargo flows in authorities and even made the Lithuanian President the ports. suspicious that those who created the laws have created Another geographic advantage of Lithuania is that preconditions for the officials to make profit and legalise the closest transit road to Kaliningrad runs via Lithuania unconscientious competition. Another step is a draft of a and this stipulates common interests in the negotiations security organisation in the Klaipeda state seaport pre• with Russia. pared by the Ministry of Transport and Communications. This draft contradicts many legal acts ascribed to the 4. Political, Legal and Economic Factors Klaipeda sea port since the Ministry of Transport and Communications and the Klaipeda State seaport Autho• These factors are expressed by international agree- rities are not to be responsible for the security of the port R. Bwkovskis, R. Palsaitis I TRANSPORT- 2002, Vol XVII, No 2, 71-75 73 territory. These functions are not characteristic of the problems occur for wagons with technical and commercial above state institutions. The draft was prepared not taking spoilage from western countries. Without eliminating the into account the opinion and financial capacities of the spoilage it is impossible to take the goods out or bring port stevedoring companies. The amount of 54 million of back from/to the customs territory within 24 hours since litas anticipated for the implementation of the security draft this is required by rules. On the other hand by taking such project could be allocated for the development of a cargo out a risk is to have administrative responsibility infrastructure of the port but not for the implementation of as for the infringement of the rules on the operations of the entrance or gate security measures. The port authority railway transport measures. Many other problems in which is responsible for the development of infrastructure organization of customs activities are met in other stations might not have enough funds for investment to quays and roads of the Klaipeda railway hub of the port. and deepening of the water area. This might also have Separate legal acts transfer the responsibility of cargo impact on cargo flows. owners or their authorised representatives to the users of One of the major hindrances for the improvement of the port or to the railway enterprise for timely clearance of the interaction between the port and railway and customs procedures, although the latter, unless they are popularising the image of transit of the country is the authorised representatives of cargo owners, cannot problem of customs procedures. In this respect Lithuania perform this activity at all. is lacking behind other Baltic States. Thus, the customs procedures in terms of transit cargo Current customs clearance procedures for transit are not perfect; consequently, the image and attractiveness cargoes are regulated by the Customs Code of the Republic of the Klaipeda port, Lithuanian Railways and Lithuania of Lithuania, Decree No. 1610 adopted by the Lithuanian as a transit country decreases. Government in 1995, Decree No. 78 adopted by the Lithuanian Government in 1999 as well as by other legal documents. Many of these legal acts are complicated, 5. Security, Technologicai, Qualitative and Quantitative contradicting to each other, incur additional hindrances Fadon and reduce attractiveness of Lithuania as a transit country. Security, technological, qualitative and quantitative Customs clearance procedures at the railway border factors are characterised by the level and status of stations and in the Klaipeda port take a lot of time (e.g. infrastructure and used technologies, determining the filling in transit declarations) and increase general cargo qualitative and quantitative transport indicators and transportation costs. The formal registration of trains perspectives. requiring to fill in transit declarations in the Klaipeda port As private capital has prevailed in the Klaipeda port, takes up to 20 hours for each train. Filling in transit the investment to new technologies increased, the declarations for each wagon or each package in the wagon approach to work organization has changed. However a increases the price up to 2-4 litas per tone. At the same very important problem still is the status of the port time the neighbouring countries use SMGS invoices and infrastructure (quays, port entrance). This hinders the there is no need to fill in transit declarations. Consequently rapid development of the port. time expenditure and transportation costs are reduced. The current port piers do not protect the piers of the There are many problems also at the customs posts. ,Klaipeda Oil" from storms and a narrow entrance is In the Klaipeda port which covers I 038 hectares there are dangerous for the security of vessels. In 03 August 2000 more than 20 various companies. From all these companies loan and state guarantee agreements with the World Bank cargoes or goods necessary for their economic activities were signed on the financing of the reconstruction project are imported and exported through the port gates by of the port entrance. The implementation of this project hinterland. The gates serve for road and railway transport, will allow not only to increase competitiveness of the port that is why there .are many entrances. The Lithuanian in the Eastern part of the Baltic, but will also improve the Government and Customs Department seek to decrease conditions of the sea environment. This is one of the most the number of gates. However then cargoes will have to move through the territories of several companies to one important projects to improve the security of the port. gate. This will make long queu.es and this does not The Klaipeda port is famous for its universality and correspond to the objective to simplify all the procedures capacity to handle various cargoes. As it was mentioned to help the cargo cross certain gates or borders. a very important factor which determined the type and Another problem is the organization of activities at size of vessels entering the port is the depth of the water customs posts in the Klaipeda port, since due to organi• area and the length of piers. For example, after having zational shortcomings customs procedures cannot be deepened the port channel up to 14 metres, the port could finished in one post. From I March 1999 rules for trans• be entered by 80000 dwt tankers instead of 30000 dwt portation, storage and checking of goods in the port comp• tankers. However so far the millions spent on deepening lex zones supervised by the customs existing in the of the port channel did not give substantial results, since territory ofthe control posts of the Klaipeda sea port were the dwarf of vessels entering the port has not changed. started to be applied. Due to the latter requirements many In order to assure maximally the activities ofthe port 74 R. Burkovskis, R. Palsaitis I TRANSPORT- 2002, Vol XVII, No 2, 71-75 coherent development of all infrastructure elements as well Implementing the Decree No. 424 of the Lithuanian as of the technical status are necessary. The railway hub Government (14 April 2000) maximum tariffs of cargo of the Klaipeda port is one of the important elements. It transportation by railways are confirmed by the Ministry includes Klaipeda, Draugyste, Rimkai railway stations as of Transport and Communications in co-ordination with well as Pauostis, Angline roads and access roads. Both the Transport Transit Committee and Competition Council. highways and station railways are in a bad condition, in Specific tariffs for cargo transportation by railways are many places the speed oftrains is restricted, traffic security defined by the Board of Lithuanian railways according to is insufficient. Railway in the Klaipeda port is one of the the rules of tariff definition for cargo transportation by bottlenecks due to its bad condition, low speed and railway transport. capacities and all them hinder cargo handling in the port. SCSP ,,Lithuanian Railways", as a member of transport The Railway hub modernisation programme appro• market and as an economic unit, should get an opportunity ved in 1998 is practically not implemented due to the to define not only factual but also the base tariffs. In the shortage of funds and lack of state support. The same can opposite case flexibility will be missing in solving tariff be said about Pauostis road which after modernisation of problems and this will take much time; a possibility is being ,Klaipeda Oil" will not assure normal activities of the created for the Jobistic activities of persons having enterprise. influence on these decisions. Evaluating the perspective co-operation directions Many of tariffs applied by the Lithuanian Railways of the Klaipeda seaport and railway it is necessary to are lower that in the neighbouring Baltic States. It prepare technological and technical base of railway for especially concerns wood, fertilisers, etc. Black metal, the development of container transportation. The latter diesel fuel tariffs are similar to those of the Latvian railways, reflects common development of intem10dal transportation however they are lower than the Estonian ones. Generally in the world and has one of the biggest potentials in the tariffs of the Lithuanian Railways are competitive in terms transit market of the Baltic States. It is envisaged that in of other Baltic states. However, very often Lithuania looses the nearest future flows of container cargoes via the Baltic to Latvia in terms of transport distance, which, in Sea will increase by three times. comparison with other major Russian economic centres is Currently the Lithuanian railways have not yet found much longer. their place in the container transport, however it is When the Russian Federation started implementing necessary to use the existing advantages. First of all this its transport policy directed towards the reorientation of concerns lower prices, operability, possibility to transport Russian cargoes to the Russian ports and after the big amounts, less restrictions to cargo mass and size. The elimination of tariff discounts valid in transporting cargoes road transport is more attractive due to its mobility, t1exibility via Lithuania, the competitiveness of the Klaipeda port and speed. decreased. Currently it is necessary to negotiate on Shuttle trains can be opposed to road transport. discounts to different cargoes and routes and to co• Finally it can be stated that a very important factor is operate closely with entrepreneurs of Kaliningrad trying the development of infrastructure and services of railways to win tariff discounts. However it is necessary to in accordance with the European Union standards, harmonise tariffs in Klaipeda and Kaliningrad directions technological, technical and organisational directions. eliminating the existing discrimination. Firstly, it is necessary to eliminate bottlenecks in In order to increase the competitiveness of the railway infrastructure, i.e. to eliminate capital repairs of Klaipeda port it is necessary to evaluate cargo tariffs and the track, modernise signalling and telecommunication railway tariffs in the port and look for the ways of to equipment, reconstruct and develop the port railway hub. reducing them. The reduction of railway tariffs alone will Having implemented the port reconstruction and not be of great use, since, comparing with the port handling modernisation activities (improvement of the port entrance tariffs, the costs for transportation of some goods via channel, deepening of the water area, reconstruction of Lithuania by railway are lower by two times. piers etc.) an effective and attractive infrastructure could For example, investigating metal transportation and be established and comprehensive railway and port handling tariffs, the situation is as follows: base tariff for interaction assured. the transportation of metal via Lithuanian territory is 4.41 USD per tone, and base tariff for handling in the port reaches 8.5 USD. Of course, with certain discounts applied 6. Pricing and Tariff Policy Facton (these comprise up to 25%) this price decreases, however Investigating general transport costs via Lithuania it in any case it remains higher than railway tariffs. is necessary to consider the main groups of expenditure, Generally base tariffs of handling in the Klaipeda p011 i.e. the port duties, prices of cargo forwarding and shipping, are similar to those in the Baltic states, so discounts, costs of customs procedures, costs of cargo handling in quality of cargo handling, possible big amount at a time the port, tariffs for services provided by railways and other (usage of vessels) etc. influence the choosing of the port additional duties [9-12]. considerably. R. Burkovs!cis, R. Palsaitis I TRANSPORT- 2002, Vol XVJJ. No 2, 71-75 75
Optimisation of tariffs (railway+port) has direci 5. In order to increase the competitiveness of the influence on the increase of the competitiveness of specific Klaipeda port it is necessary to evaluate cargo tariffs and transport routes, thus it is very important to look for the railway tariffs in the port and look for the ways of reducing possible ways and make an agreement in the entire corridor. them. Optimisation of tariffs (rail-...'ay+port) has direct This would allow to optimise transportation prices and to influence on the increase of the competitiveness of specific retain them in the entire rcute. transport routes, thus it is very important to look for the In order to liberalise t>riff and transpm1ation market possible ways and m